The use of electric two-wheelers is increasing significantly in India. According to a report by investment banking company Jefferies, the share of electric vehicles in the two-wheeler segment will increase to 13 percent by the financial year 2026-27. In the financial year ending March 2024, the share of electric vehicles in two-wheelers is 5 percent. From the financial year 2020-21 to 2023, there was a slight increase in the share of electric vehicles in the two-wheeler segment.
However, Jefferies claims that due to the reduction in incentives, the share of electric two-wheelers remained in the range of 4-7 percent in the last 12 months. However, electric two-wheeler manufacturing companies also introduced low-cost bikes and scooters during this period. The brokerage firm’s report says, ‘We are currently assuming that the share of electric two-wheelers can increase from 5 percent to 7%/10%/13% in FY 2025/FY 2026/FY 2027 respectively. However, in view of the new scheme to target only 25 lakh electric two-wheelers in the next two years, we also see a downside risk in it.’
According to Jefferies, Ola Electric has emerged as the most important manufacturer in the country’s electric two-wheeler market. It says that its market share was 21 percent in 2022-23, which increased to 35 percent in 2023-24. After this, this share increased to 49 percent in the first quarter of 2024-25. However, according to Jefferies’ report, this share decreased to 31 percent in August. On the other hand, the share of Bajaj, TVS and Ather has increased in the June quarter.